i don't think they know customer, what customer want is cheap reliable and most important 'wear like no wear' feel, nobody want to smell it......i believe general prefer the original smell always the best. lol
The new factory and new brands not even started, everyone scared for nothing, and started to throw. I never thought TopGlove is such a scary company. You said what if Karex next quarter profit drop? Then what I want to ask, what if next quarter, TopGlove announced their new plan failed?
Everyday drop 1 cent, MC loss 10millions. MC of karex has decreased 1 billion since early this year, from 2.6 billion to 1.5 billion, how low it can drop to?
Karex 4 quarter profit drop, yet PE valuation still so high. Come on la abangs abangs, plesae wake up. Sell first then buy back later. Near term Karex profit won't go up one as they still require a lot of money to expend their One condom market. Tendering business not good as well
The current capacity is on 70% utilization, which it required longer time to increase the production utilization. Reason is very simple because the human population is not going to increase 10% every year, unless they are able to bring in more OEM project in. It won't be simple task because condom industry is a highly competitive industry and Malaysia is not the only country which has rubber tree, other country such as Thailand and China are our competitor as well.
The only way that seem to be more "reasonable" to increase the revenue is continue invest into promote their own brand, which is surely i have to agreed with their direction to continue invest into CAPEX and i guess it would also continue on for another few more quarters.
I believe It is a good business, and yet it has to take times (few years) to see better "profit". The only thing i don't comfortable to enter due to high PE valuation compare to average PE in bursa around 16.
Karex shareholder need to be patience because a good business usually take 10 years to build their kingdom. Don't forget KAREX only started their engine in year 2013, give them another 6 years will do.
so you are asking us to waste 6 years cost of opportunities into karex? haha...why don't put such money into growing stock, and come back to karex when you see a significant improvement of their business.
karex problem is they dont have a great logistic manager and they are inexperience on distribution. they cant distribute their product efficiency. 1 condom is only cost 3sen. the main cost for a condom to sell to a consumer is the distribution cost not the manufacturing cost. karex was oem, they only know how to control manufacturing cost but not distribution cost. condom is cheap to make but costly to distribute. goh is too simple too naive. goh should learn from how taiwanese manage to make huge profit from nails nuts bolts all this kind of product cheap to make and costly to distribute.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
meistsk3134
2,368 posts
Posted by meistsk3134 > 2017-07-12 16:28 | Report Abuse
hahahaha failedspecky Ceo invent durian flavour